S&P: Scripps outlook stable

Standard & Poor's said it revised the outlook on Scripps Networks Interactive Inc. to stable from negative and affirmed its A- corporate credit rating.

The agency also affirmed the A- rating on the senior notes issued by TCM Sub LLC, the direct parent of the Travel Channel, and guaranteed by Scripps Networks.

"The outlook revision to stable reflects the company's lower leverage and our expectation that leverage could decline further because of improved operating performance, barring any major debt-financed acquisition over the near term," S&P analyst Deborah Kinzer said in a statement.

"Our A- corporate credit rating reflects the company's good EBITDA margin and healthy discretionary cash flow from its portfolio of ad-supported cable TV networks, anchored by HGTV, the Food Network and the Travel Channel."

The company's fully adjusted leverage of 1.6x falls within the range of S&P's indicative leverage ratio of between 1.5x to 2.0x for a modest financial risk profile, the agency said.

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